USAID/BOLIVIA; LOAN EVALUATION REPORT; AGRICULTURAL PRODUCTION AND MARKETING (AGRICULTURAL REFINANCING FUND)

(1)THE FUNCTIONING FACILITY WITHIN THE BANCO CENTRAL FOR CHANNELING CREDIT FOR AGRICULTURAL DEVELOPMENT PROJECTS THROUGH THE BANKING SYSTEM IS CONSIDERED TO BE SATISFACTORILY FULFILLED. (2)WHILE THE IMPLEMENATION UNIT IS STAFFED WITH CAPABLE TECHNICIANS, IT IS NOT FULFILLING ALL OF THE RESPONSIBILITIES ORIGINALLY ANTICIPATED OF IT. (3)PROGRESS TOWARD BOLIVIA'S ABILITY TO SATISFY A LARGER PORTION OF ITS CONSUMPTION NEEDS OF BASIC FOOD PRODUCTS (BASIC GRAINS, EDIBLE OILS AND FATS, DAIRY PRODUCTS) FROM LOCAL PRODUCTION IS VARIED. (4)OF THE 17 INTERMEDIATE CREDIT INSTITUTIONS (ICI) WHICH COULD PARTICIPATE IN THE AGRICULTURAL REFINANCING FUND (FRA) PROGRAM, 13 ARE NOW PARTICIPATING. TWO BANKS HAVE UTILIZED THE MAJORITY OF THE FRA RESOURCES WHICH HAS LIMITED THE DEGREE TO WHICH THE EXPECTED CONDITION OF INCREASED VOLUME OF AGRICULTURAL BUSINESS BETWEEN THE CENTRAL BANK AND ICI'S IS BEING ATTAINED. (5)DATA REGARDING NEW AGRICULTURAL LOANS EXTENDED BY ICI'S EACH YEAR AND YEAR-END OUTSTANDING BALANCES IN AGRICULTURAL LOANS SHOW A MARKED INCREASE DURING THE LAST FEW YEARS. THE EVALUATORS DISCUSSED AND MADE RECOMMENDATIONS ABOUT THE BORROWER'S COMPLIANCE WITH CONTINUING COVENANTS OF THE LOAN AGREEMENT AND 10 OTHER PROJECT-RELATED ISSUES.